Digital News Report – Kraft Foods has made an offer to buy the English confectioner and beverage company, Cadbury, and yesterday they sweetened the offer. At least one large shareholder in Kraft is against the deal. Warren Buffet’s Berkshire Hathaway (BRK.A; BRK.B), the largest shareholder in Kraft, has public opposed the purchase offer (see press release below).

“Berkshire Hathaway has voted “no” on Kraft’s proposal to authorize the issuance of up to 370 million shares to facilitate the acquisition of Cadbury,” Berkshire said in a statement. They own 138,272,500 shares in the company, roughly 9.4 percent of the stock.

Kraft (KFT) agreed today to sell its frozen pizza businesses, DiGiorno, Tombstone and Jack’s brands in the United States, the Delissio brand in Canada and the California Pizza Kitchen trademark license, to Nestle for $3.7 billion in an effort to finance the Cadbury deal. Some see this as a mistake since the pizza business was on of the fastest growing operations.

On September 7, 2009, Kraft made a $16.3 billion (£10.2 billion) offer for Cadbury. At that time they offered 40 percent cash and 60 percent stock. The sale of the pizza business will allow Kraft to offer more cash, roughly 50 percent cash and 50 percent stock, according to Tribune reports

Berkshire, which already owns Sees Candy, is not happy with the deal. “To state the matter simply, a shareholder voting “yes” today is authorizing a huge transaction without knowing its cost or the means of payment,” the company said.

If Cadbury does not agree to the purchase, Kraft must go forward without their fastest growing products – pizza.